Now, More Than Ever, We Need Alberta Oil

Recent world events have seen a return to Cold War-era tactics by Russian forces as they invade Ukraine to capture oil-rich deposits and feed off the bread basket of the East. And there is no telling what Russia’s end game is.

One thing is certain, however. Putin’s oligarch friends who have enjoyed an obscene free for all in the accumulation of their wealth are feeling the pinch of world pressure as real estate holdings, professional sports teams such as the famed Chelsea football (soccer) club, luxury retail brands such as Rolex, and international banks such as Credit Suisse, all of which have strong ties to Russia’s super rich, come under fire of their own.

Aeroflot, Russia’s national airline, lost its capacity for accepting reservations, and getting replacement parts for routine maintenance is now impossible. Cargo ships carrying goods to and from Russia are not being loaded or unloaded in most places around the globe. Wines and spirits made in Russia are removed from store shelves in the West. The cumulative effects of these relatively minor sanctions are causing grave concern for Russia’s elite.

Putin has a cache of weaponry all his own in the form of oil and the pipelines that carry his Black Gold. His cunning and foresight into developing key world markets for his oil, particularly that of Europe, during the kinder, gentler period of his reign is serving him well as he turns off the taps to his reserves. GazProm, Russia’s national oil and gas company, is currently squeezing Germany by suspending all agreements for oil to that country. Perhaps it is an attempt to hedge against the world boycott of Russian goods and gain a strong and empathetic voice among the European Union. Nonetheless, Germany finds itself a target of Russia while it scrambles to replace a supply of fossil fuels, which has the very real potential of developing strange bedfellows.

Canada is friends to the world, and within its borders produces enough crude oil to export around the globe while maintaining a lucrative supply for its own use. What it lacks is sufficient capacity in its pipelines to bring that crude from Alberta’s oil producing areas to ports that can then ship to markets, without limit. A groundswell of environmental and Indigenous groups in practically every direction leading out of Alberta have exterminated or severely limited new pipeline construction to a dangerously low output.

What does this mean? Immediately, it means our rate of inflation in Canada will soar, as we remain reliant on imported oil for our needs. Remember the 70’s when OPEC turned off its taps? That is exactly the course of events we are likely to see in the foreseeable future. Even if all the pipeline construction projects were to be approved today, it would be years before they would be operational. There underlies why now, more than ever, the world needs Alberta oil.

What it also means is that an oil-rich country like Canada, with an oil-rich province like Alberta, cannot properly supply itself and its allies with the fossil fuels on which the world still relies. Imagine how much smaller the impact on world events would be if there were a safe, steady supply of crude oil from Alberta to replace that from a dictatorship like Putin, or anyone else for that matter.